Question

Monty Company reported the following amounts in the stockholders’ equity section of its December 31, 2016, balance sheet.

Preferred stock, 10%, $100 par (10,000 shares authorized, 1,800 shares issued)		$180,000
Common stock, $5 par (103,500 shares authorized, 20,700 shares issued)		103,500
Additional paid-in capital		114,000
Retained earnings		423,000
Total		$820,500

Prepare the December 31, 2017, stockholders’ equity section. Assume 2017 net income was $336,000.

Answer 1

		Stockholder's Equity
	for the year ended December 31,2017
Capital stock
Preferred stock,10%,$100 par (10,000 shares
authorized ,1,800 shares issued)						180,000
common stock ,$5 par value ($103,500 shares authorized
,20,700 shares issued )						103,500
Total capital stock						283,500
Addittional paid in capital						114,000
total paid in capita						397,500
Retained earnings						759000
total stockholders Equity						1,156,500